| Sumario: | Germany and Japan have both used regionalism as a hedge against American power in the area of telecommunications, but this strategy has taken very different forms. Germany's regionalism is within the European Union. Since 2002 Japan has developed an ad hoc technology alliance in telecommunications with China and South Korea. Both the European Union and Northeast Asian countries have used industrial policy to promote telecommunications technology and both regional organizations have expressed concern about American dominance in telecommunications. Both Germany and Japan have looked to their lower income neighboring countries for investment opportunities in telecommunications, but each has taken a different approach. Japanese telecommunications firms have not been very successful in investing in other countries or in exporting Japan's very sophisticated and expensive telecommunications equipment. The Japanese government and business organizations have taken the lead in trying to promote joint research and pursue development of joint standards. Germany's Deutsche Telekom has been much more active than Japanese firms in international investment. The European Union differs from the Northeast Asian group in that it has pressed Germany to keep its domestic telecommunications market open and to make Deutsche Telekom compete internationally. It is surprising that China, Japan and South Korea have reached out to each other to cooperate on technology and standards development despite longstanding mutual antagonisms. The Northeast Asian agreements on telecommunications recall the European Coal and Steel Community (ECSC) of 1952, an initiative that also sought to link economically states divided by deep resentments. Like the ECSC, the current Asian initiative targets some of the most important economic sectors of the day. However, strong market pressures tend to undermine cooperation, and it is uncertain how much impact the agreements on telecommunications will really have.
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